I want to talk about what’s the difference between a real estate agent making $250,000 a year and one making a $1,000,000 a year +.
What is the main difference between strategy, mindset, approach between a six figure earning real estate agent and one making seven figures or more. I want to go through that with you today. This is an important distinction. If I had to, if I was challenged to balance and you know, distill and really just kind of get it down to one thing, one concept, one word that differentiates those two people, the six-figure earner and the seven figure earner.
One word and concept: leverage
That’s what we talked about last week. Leverage is everything. By leverage I mean, doing more with less. By leverage, I mean, taking systems, capital, personnel, processes, technology and implementing that into your business, into your real estate practice to do more with less input. So the high producing agents, the ones that are doing over a million dollars a year in GCI, understand leverage acutely, they have built well-functioning and well-oiled machines. Teams that they’re the head of, the CEO of, they’re managing the different functional areas of their business from administration to accounting, to sales, marketing, operations, recruitment, talent, you name it, but they’re managing other people to manage those departments.
They’re not managing them all themselves because they understand the leverage of personnel and of human capital. The way in which the high performers, again, in the seven figures and up are leveraging technology is they’ve invested in the right technology. That’s moving the needle in the different areas I just touched on in a meaningful way. So they’re taking tech to better convert the leads that come in.
They’re taking technology to better market those listings they have. They’re taking technology to better manage the documents, the contract, the workflow, the signatures, the correspondence, the meetings, all of that with clients. Using technology to manage the back office better on all the administration. From MLS to data input, to website, to different syndications. On the accounting for profit and loss statement to the different expenses, to reconciling those again, statements each month to projections, revenue, expense, et cetera, and forecasting in the future.
The smart agents, the ones that are doing seven figures and up understand the concept of technology leverage. They’ve implemented and invested in the right technology in all of these different silos or functional areas of their business. The other key difference between agents doing six figures, 100, 200, 250,000, and those doing a million plus is mindset. This is one of the biggest ones too.
Mindset is critical
The ability to believe, conceive big things, big goals, things that might make you scared and uncomfortable. That is step one to actually achieving those, making those a reality manifesting into your life. So we have to have the propensity, the ability to think and dream bigger than what we’re doing last year. This year, even next year, what do we want to do in two, three, five, ten years? We need to conceive and believe that in order to start to create an architect a plan, a strategy with timeline, milestones, and tactics that underpin to make that dream a reality.
So mindset is key, right? Leverage and mindset are the two biggest things that separate the six figure earning real estate agent and the seven figure plus earning real estate agent. Who views this business is just that: a business. Where he or she is the CEO, the team owner, the architect, if you will.
Whereas the other agent is simply a really busy agent, right? A highly producing agent and functioning one, but not really understanding leverage. Because they’re doing so much, they’re wearing all the hats. They’re getting burnout, right? They’re working 70, 80 hour plus weeks. They don’t have the work-life balance. Their health and relationships might be suffering. That’s not a sustainable model for the long-term to really excel as a real estate agent.
So a couple of things I wanted to share, again, the difference between that six figure earner and a seven figure real estate agent. Hopefully this is helpful. Again, leverage and mindset, two big things. But if I had to come down to one it’s leverage. If this was helpful, leave a comment below, like and share this with somebody who could also benefit from it. And it’s always to your success, your freedom and your happiness. We’ll talk to you next week.